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China to expand medical insurance in bid to reform healthcare | China to expand medical insurance in bid to reform healthcare |
(about 2 hours later) | |
China will expand medical insurance to cover all critical illnesses for its population of nearly 1.4 billion by the end of the year, the government has announced. | China will expand medical insurance to cover all critical illnesses for its population of nearly 1.4 billion by the end of the year, the government has announced. |
The decision is the latest step in a plan to remedy a healthcare system that has sparked public discontent. | The decision is the latest step in a plan to remedy a healthcare system that has sparked public discontent. |
The state council said half of the medical costs will be covered by insurance in a bid to “more effectively reduce the burden of medical expenses”, according to a statement on the government’s website. | |
President Xi Jinping’s government has touted access to affordable healthcare as a key platform of his administration, underscoring the importance of meeting its population’s needs. Many people have often complained of significant expenses due to low levels of insurance coverage. | President Xi Jinping’s government has touted access to affordable healthcare as a key platform of his administration, underscoring the importance of meeting its population’s needs. Many people have often complained of significant expenses due to low levels of insurance coverage. |
Many people say the cost of serious illnesses such as cancer and diabetes can bankrupt households under the current system. | Many people say the cost of serious illnesses such as cancer and diabetes can bankrupt households under the current system. |
The aim of expanding health insurance was to “effectively alleviate poverty caused by illness” and to build a strong universal healthcare system, the state council said. | The aim of expanding health insurance was to “effectively alleviate poverty caused by illness” and to build a strong universal healthcare system, the state council said. |
Since 2009, China has spent 3tn yuan (£307bn) on healthcare reform, but the system still struggles with a scarcity of doctors, attacks by patients on medical staff and a fragmented drug distribution and retail market. | Since 2009, China has spent 3tn yuan (£307bn) on healthcare reform, but the system still struggles with a scarcity of doctors, attacks by patients on medical staff and a fragmented drug distribution and retail market. |
Economists say it is crucial for China to improve the quality of its healthcare if it wishes to remake its economy and boost domestic consumption. They say a stronger safety net will encourage Chinese to spend more and save less. | Economists say it is crucial for China to improve the quality of its healthcare if it wishes to remake its economy and boost domestic consumption. They say a stronger safety net will encourage Chinese to spend more and save less. |
China’s healthcare spending is set to hit $1tn by 2020, up from $357bn in 2011, according to McKinsey & Co, attracting a rapid inflow of money from private insurers, hospital operators and other investors. | China’s healthcare spending is set to hit $1tn by 2020, up from $357bn in 2011, according to McKinsey & Co, attracting a rapid inflow of money from private insurers, hospital operators and other investors. |
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